New law to regulate Wall Street and banks

Cover costs

“This bill puts the referees back on the field,” Mr Hoyer said.

The chief argument in the House centered on the Democratic proposal that would assess large financial companies a fee to create a $150 billion fund to cover the costs of dissolving companies that pose a threat to the economy.

Democrats said the fund did not amount to a reserve for bailouts since it would not be used to keep companies afloat but would instead lead to a more orderly shutdown and would be paid for by large companies, not taxpayers.

Republicans, trying to capitalise on public frustration with financial bailouts, said that failing firms should instead go through normal bankruptcy proceedings.

“We just think at the end of the day that $150 billion in a permanent bailout fund is not the direction the American people want this nation to go,” said Representative Mike Pence of Indiana.